Warehouse Technology is Not an Option, It’s a Must Have

Buzzfeed posted an article illustrating how 2014 is the future. Although no one is flying around in hovercrafts, the technological advancements in the past few decades have far exceeded what most thought possible: Astronauts are even taking selfies in space! Considering the rest of the world has advanced so much, what have 3PLs done to keep up with the times?

There are dozens of warehouse technologies 3PLs use. Below is a list of the most important technologies 3PLs should be utilizing:

Warehouse Management System (WMS): BusinessDictionary.com defines a WMS as “a software application which supports the daily operations of a warehouse. The software application allows for a system of centralized management of warehousing tasks including inventory control, tracking and the location of stock items.”

In a study posted in the April 2014 issue of DC Velocity titled Software Survey: What’s Hot in Today’s DCs? They explored the top functions that readers use their WMS for:

Radio Frequency Identification (RFID): According to the FDA, RFID “refers the a wireless system comprised of two components: tags and readers. The reader is a device that has one or more antennas that emit radio waves and receive signals back from the RFID tag. Tags, which use radio waves to communicate their identity and other information to nearby readers, can be passive or active. Passive RFID tags are powered by the reader and do not have a battery. Active RFID tags are powered by batteries.”

Advantages of using RFID within the warehouse:

Reduction in theft

Reduction in counterfeiting product

Improving visibility for other technologies including:

Electronic Data Interchange (EDI): the transfer of data between different companies using networks.

Bar Coding: the most common form of automatic identification: They track virtually everything.

Customer Relationship Management (CRM): a system for managing interactions with current and prospect customers.

Yard Management System (YMS): is a software designed to oversee the movement of trucks and trailers in the yard of a large facility.

Enterprise Resource Planning (ERP)

Proper training for new technology is a must!

Enterprise Resource Planning (ERP): Wikipedia defines ERP as “a business management software – usually a suite of integrated applications – that a company can use to collect, store, manage and interpret data from many business activities, including:”

Product planning, cost

Manufacturing or service delivery

Marketing and sales

Inventory management

Shipping and payment

There are endless options for advancing 3PL operations, but companies must take it one step at a time. New technologies can be overwhelming. Proper training needs to take place to make sure everyone knows the ins and outs of the systems before it is actually used.